Gaming Business in the Middle East: Opportunities and Challenges
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1 Gaming Business in the Middle East: Opportunities and Challenges All Rights Reserved - Game Power 7 1
2 All Rights Reserved - Game Power 7 2
3 All Rights Reserved - Game Power 7 3
4 Region Overview All Rights Reserved - Game Power 7 4
5 Region Overview Population 338M - Area 13,900 km2 21 Countries have many in common, and so many versatility. Commons include: Modesty and family values Religion: Islam & Christianity Language: Arabic Versatility in Social Economic Technology All Rights Reserved - Game Power 7 5
6 Region Economy Purchasing Power Parity (PPP) is an economic indicator for the purchasing capabilities of families PPP indicator ranges from The highest UAE $49,600 (3 rd worldwide) Qatar $29,800 (28 th worldwide) Bahrain $25,800 To the lowest Syria $4,200 Sudan $2,400 Yemen $1000 And in between Contains some of the richest & poorest countries in the world All Rights Reserved - Game Power 7 6
7 Region Society Age Group Total Percent M 12.1% M 10.6% M 10.6% M 10.3% M 19.2% M 36.2% Male Percent 174M 51.7% All Rights Reserved - Game Power 7 7
8 Technology in the Region Indicator Internet Penetration (% Population) 2007 Internet Users Total 10.5% 7% Palestine 33.2% UAE 35M 8.6M Egypt 220K Yemen Internet Usage Growth ( ) 1400% Internet Users Est M Broadband Lines M 50% increase over 2006 Broadband Lines Est M All Rights Reserved - Game Power 7 8
9 Technology in the Region Broadband Broadband has taken off in the region 2 years ago Most countries in the region have started large investments for broadband infrastructure (both 3G and DSL technologies) Growth of broadband lines per country between % 120% yearly. Saudi Arabia DSL lines grew %480 between Estimated number of 3G users by M All Rights Reserved - Game Power 7 9
10 Technology in the Region Cyber Cafes The most important teens activity in the region is attending cyber cafes After 7:00pm, cyber cafes are packed A survey of two capitals Damascus: 2500 cafes (10 computers or above) Cairo: 6000 cafes (10 computers or above) Voice and video chat Multiplayer games Sports: Need for Speed, FIFA FPS: Call of Duty, Counter Strike, Metal Gear Strategy: Warcraft,, C&C All Rights Reserved - Game Power 7 10
11 Technology in the Region Computers PCs are the dominant gaming platform The latest versions of 3D games are acquired and played by teens in Internet cafes and at homes. High end cheap locally assembled PCs are very popular High end CPU - 2 GB RAM MB Video Card 17 Monitor $600 All Rights Reserved - Game Power 7 11
12 Laws & Regulations In the Region Everything is permitted No laws or regulations exist in regards to gaming in the region Yet, any thing could be prohibited! Hard to predict what could be prohibited and what could be ignored and permitted!! Several parties are responsible for permitting or prohibiting Religious Institutions Governments Public All Rights Reserved - Game Power 7 12
13 Laws & Regulations In the Region Pokemon Spacetoon obtained the license for Pokemon publishing in the MENA region 1 year after the launch, a Fatwa (religious decision by some scholars) prohibited watching Pokemon! Pokemon promotes Darwinian Evolution Pokemon games promotes gambling Public responded with rumors Pokemon character names are words of blasphemy All Rights Reserved - Game Power 7 13
14 Laws & Regulations In the Region Pokemon The complete line of Pokemon products were either banned and/or deserted by public Merchandise, movies, toys, games, etc. Disastrous loss for the group Lesson Learnt: Culturalization is the key to success in the region Understand the culture correctly, and customize your product to fit this culture Avoid taboos Promote cultural values All Rights Reserved - Game Power 7 14
15 Fulla the doll Laws & Regulations in the Region Fulla Our culturalized replica of Barbie Middle Eastern brunette doll Virtuous Doll Fulla is the dominant trademark for all girl apparels, accessories, and school materials Over 4M dolls and over 10M accessories and apparels sold in the past 4 years 4,000 articles on world media (BBC, Herald, CNN, etc.) about how Fulla was able to drive Barbie out of the market! All Rights Reserved - Game Power 7 15
16 Fulla success Laws & Regulations in the Region Fulla Fulla has no boyfriend Fulla is not blonde Fulla s clothing is modest Parents encourage their daughters to buy everything Fulla All Rights Reserved - Game Power 7 16
17 MMO In The Region All Rights Reserved - Game Power 7 17
18 Status Quo Rough estimation: 250k MMO players, and 1M browser based players Mostly: WOW, and some FTP MMOs 35M Internet user Percentage: ~0% The Arab World is an untouched MMO Gaming market. All Rights Reserved - Game Power 7 18
19 Theoretically.. The Opposite!! The MMO Gaming should be very popular Percentage of group age 5-30 years is the highest in the world (52% vs. 40% world average) Cyber cafes are full with kids and teens: Chat Social activities Multiplayer game play High percentage of Internet usage growth Money is usually not a problem All Rights Reserved - Game Power 7 19
20 WHY??? No game publishers actively operating in the market Localize and culturalize the games Educate the concept of MMO games All Rights Reserved - Game Power 7 20
21 Publishers Operating in the Region Gravity Middle East Started operation 2005 Planned to publish Ragnarok II Currently CBT for Ragnarok I Travian Games Published its own browser based game A Chinese company announced their plans to publish several games in the region Game Power 7 Started operation November 2007 Publishing the first 3D MMO Game by the end of 2008 Actively pursuing other online games cooperation opportunities All Rights Reserved - Game Power 7 21
22 Challenges for Game Publishers Customer education Less than 20% of kids and teens know what an MMO is and how you play it Payment methods Credit cards are not widely used Credit cards are rarely used online No payment cards exist in the market Internet Data Centers Very few IDCs can be considered good enough for an MMO Bandwidth and server collocation costs are very high Absence of official statistics and market studies All statistics that we used were local made through the help of our offices in the region All Rights Reserved - Game Power 7 22
23 Game Publisher Requirements Heavy experience in region culture and taste Media access to educate customer of MMO games concept and promote the published games Strong regional presence and experience Ability to create and distribute needed payment cards All Rights Reserved - Game Power 7 23
24 Expectations Internet Users 35M 58M 88M MMO Players 250K 5.8M 17.6M Percent MMO Players / Internet Users ~ 0% 10% 20% All Rights Reserved - Game Power 7 24
25 General Profile All Rights Reserved - Game Power 7 25
26 All Rights Reserved - Game Power 7 26
27 Weiss Investment Media SpaceToon & Space Power TV & Radio Channels Spacetoon Production, Tiger Production, & Venus Production Spacetoon Magazine, Interactive CDs spacetoon.com - SpaceZee Trading New Boy, Sweet Toon, Spacetoonat, Pedia Tech Real Estate Spacetoon Mall, Spacetoon Theme Park Gaming Game Power 7 All Rights Reserved - Game Power 7 27
28 Spacetoon TV Satellite, free-to to-air TV channels Arabic English Bahasa Indian Russian Farsi Kids edutainment cartoon channels Owns the largest library of Arabic dubbed animation in the world 85% of surveyed mothers said that they encourage their children to watch Spacetoon because of the "educational children programs" Spacetoon in-house studios produce proprietary cartoon programs Licensed by other media companies Requested by international organizations to convey global development messages to kids All Rights Reserved - Game Power 7 28
29 Spacetoon.com Highest ranked Arabic website for kids Largest Arabic website for kids Education, news, Entertainment, interactive, etc.) 85,000 active registered users 7 million hits per day All Rights Reserved - Game Power 7 29
30 Other Media Spacetoon Magazine Spacetoon Radio Media Production Spacetoon Production Tiger Production Venus Production Spacetoonat (Department Stores) SweetToon (Kids Nutrition) Pedia Tech (Technology) New Boy (Toys and Leaning Materials) All Rights Reserved - Game Power 7 30
31 Space Power A satellite, free-to to-air TV channel Dedicated to teens & adolescence in the Arab world A pioneer channel, the first of its kind in the region. Conveys an educational message combined with entertainment. Sports, music, movies, reality programs, news & talk shows, Gaming and robot programs, etc. Accompanied by Monthly Magazine Social Web Site Launched April 2008 All Rights Reserved - Game Power 7 31
32 Partnerships in Korea Publishing Rappelz in our region First company to cooperate with us to culturalize and localize an MMO Game Building future cooperation and partnership plans All Rights Reserved - Game Power 7 32
33 Partnerships in Korea Complete cooperation framework Global gaming shows Global gaming events Global game publishing and development All Rights Reserved - Game Power 7 33
Gaming Business in the Middle East: Opportunities and Challenges. All Rights Reserved - Game Power 7 1
Gaming Business in the Middle East: Opportunities and Challenges All Rights Reserved - Game Power 7 1 All Rights Reserved - Game Power 7 2 All Rights Reserved - Game Power 7 3 Region Overview All Rights
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